Scanfil releases first quarter results

Scanfil plc has released first quarter results for 2012, showing operating profit of 1.4 million euro.

January – March summary:

- Turnover totalled to 42.6 million euro - Operating profit 1.4 million euro, 3.4% of turnover - Profit for the review period was 1.2 million euro

Scanfil said that demand for telecommunications products was very poor while demand for professional electronics products was very positive. Professional electronics customers accounted for 76% of total sales for the first quarter, telecommunications customers for 24%.

Distribution of turnover based on the location of customers was as follows: Finland 47%, rest of Europe 19%, Asia 33%, USA 1%.

Harri Takanen, CEO of Scanfil plc commented:

“The new Scanfil plc was established in the demerger of Sievi Capital plc on 1 January 2012. In the demerger, Scanfil EMS Oy, a company with 35 years of experience in contract manufacturing, transferred to Scanfil plc. Since this is the first interim report of the new company, Scanfil plc does not have comparison figures for previous financial periods. The company has published the figures for the Scanfil EMS Oy Group for 2011 as comparison data.

Sales were low during the first quarter due to the weak demand for telecommunications products. The demand for professional electronics products, on the other hand, was strong. In spite of the challenging market conditions, the company has been able to keep its profitability positive. The high motivation and commitment of the personnel have been of paramount importance in being able to adjust to the changing market situation. Flexibility is essential in the contract manufacturing business.

The existing capacity of the company’s contract manufacturing business makes it possible to increase production and turnover without making major investments. The company’s result can be improved this way. We believe that growth can be achieved by boosting our sales efforts with regard to both our existing customer base and new customer acquisitions.”